Alterra reports $79 million profit for first quarter

HAMILTON, Bermuda—Alterra Capital Holdings Ltd. reported a profit of $79.0 million for the first quarter of 2012, compared with a net loss of $46.7 million for the same quarter of 2011.

The Hamilton, Bermuda-based specialty insurer and reinsurer posted a combined ratio on property/casualty business of 92.6%, compared with 112.5% for the same quarter of 2011. Net investment income rose 1.6% to $58.7 million, compared to $57.8 million in the same quarter of 2011. Net written premiums written fell 10.9% to $436.4 million, representing a decrease of $53.6 million compared with the same quarter of 2011. The company said the decrease reflects increased property reinsurance premiums ceded in order to better manage its aggregate property exposures across all segments.

“We started the year off with a solid quarter and the financial results reflect a good balance between underwriting and investment performance,” Alterra President and CEO W. Marston Becker said in a statement. “The market has firmed materially for any risk that has property catastrophe exposure, and has firmed somewhat for certain other lines of business. “We continue to expect positive rate movement through the balance of 2012, and believe Alterra is well-positioned to take advantage of underwriting opportunities as better times return.”